Now that China has the worst of the COVID-19 pandemic tentatively under control, it is once again looking at emerging technologies to give itself an edge. Could its blockchain focus be the dominant narrative for the cryptocurrency market in 2020?
The pandemic may have stalled China’s blockchain aspirations temporarily, but the country is slowly but surely picking up momentum again. Multiple announcements made recently demonstrate that blockchain technology is fresh on the minds of the Chinese state and tech giants in the country.
The Chinese Catalyst
Last year, the cryptocurrency industry was shocked by what was one of the biggest stories of the year: President Xi had made blockchain technology a core focus of the country’s national strategy.
Now, it appears that the country is once again ramping up its blockchain focus. Recently, BeInCrypto reported that the ‘digital yuan’ concept was being finalized. Leaked images allegedly show a demo that is close to full public release. Alibaba has doubled-down on blockchain-as-a-service technology as well, along with other Chinese tech companies who now see it as an opportunity.
If China continues to aggressively pursue blockchain technology in 2020, then this could be the catalyst for the entire cryptocurrency market to boom.
‘A Sovereign Blockchain’
The greater blockchain industry is hoping that China’s investments will spill over and benefit the entire sector. However, this is uncertain. As of now, the country seems committed to its idea of a ‘sovereign blockchain’ and converting some of its fiat currency to a blockchain-run state system.
Whether or not other cryptocurrencies like Ethereum (ETH) or Bitcoin (BTC) will benefit remains to be seen. Regardless, it cannot be denied that China’s interest raises the profile of the entire industry. Despite the country still being hostile to cryptocurrencies, blockchain-related innovation will benefit from the country’s investments.
In short, the 2020s may see a contest between major powers that see the digital currency space as a means to gain an advantage. China, at the moment, seems to be taking the lead on this front.